Can a Student Receive a Pell Grant for a Second College Degree?

I am a 25-year-old woman looking to go back to school for a second
degree in a different field of study than my original degree. I am
married to an enlisted sailor and currently unemployed. For my first
degree I did not fill out the FAFSA and therefore I did not receive
any federal aid in the form of grants or loans. Now that I’m wanting
to go back to school I will fill out the FAFSA, but I was wondering if
the fact that I have not filled it out before and have not used
federal resources might count in my favor to actually receive federal
grants this time around. Is that possible or will the fact that I’m
seeking a second degree make me completely ineligible for that type of
aid?
— Diana R.

Eligibility for the Federal Pell Grant is restricted to students who
do not already have a Bachelor’s degree.

If a student is seeking a second Bachelor’s degree, she will not be
able to get a Pell Grant regardless of whether she received federal
student aid in the past or not. (Such a student remains eligible for
the Federal Stafford loan, up to the annual and aggregate loan limits,
as well as the Federal Work-Study program.)

If the student’s previous degree was an Associate’s degree or
certificate, however, she will potentially be eligible for a Pell
Grant. So long as the student has not yet received a Bachelor’s
degree, she remains eligible for the Pell Grant.

Aside from the restriction to a first Bachelor’s degree, a student who has
not previously used the Pell Grant will have more semesters of Pell
Grant eligibility remaining than a student who previously received
Pell Grant funding.

Pell Grants and Lifetime Eligibility Used (LEU)

The Consolidated Appropriations Act of 2012 imposed a new lifetime
limit on the number of semesters of Pell Grant funding available to a
student, effective July 1, 2012. Undergraduate students are now
eligible to receive the equivalent of at most 12 semesters of Pell Grant
funding. (Previously students were eligible for up to 18 semesters of
Pell Grant eligibility.) The limit applies to all Pell Grant funding
ever received by the student, not just funding received since the
effective date of the legislation.

The US Department of Education has introduced a new concept and
acronym to measure a student’s remaining eligibility for the Pell
Grant. The Lifetime Eligibility Used (LEU) is the number of years
worth of Pell Grant funding remaining, expressed as a percentage. For
example, 100% represents a full year of eligibility, so 600%
represents the equivalent of 12 semesters of eligibility. If a student
receives a Pell Grant while enrolled on a half-time basis for a full
award year, the Pell Grant will be half of the Pell Grant to which the
student was entitled, increasing the LEU by 50%. Likewise, if a student
receives a Pell Grant while enrolled full-time for just one semester,
the LEU will be increased by 50%.

In 2009-10 and 2010-11, students enrolled in accelerated degree
programs could have received two Pell Grants in a single year. Such
students will have their LEUs increased by 200% for the two Pell Grants,
not 100%.

Students can see their current LEU percentage by logging into the
National Student Loan Data System (NSLDS).
The LEU is listed on the Financial Aid Review page.
If a student’s LEU equals or exceeds 600%, the student is no longer
eligible for the Pell Grant. If a student’s LEU remaining is less than
100%, the student will be eligible for less than a full Pell Grant.

The LEUs are measured against the amount of Pell Grant funding the
student would have received if the student were enrolled on a
full-time basis for a full award year. The LEUs are not measured
against the maximum Pell Grant. So a student may wish to turn down a
small Pell Grant to preserve future eligibility for the Pell Grant if
the student expects to be eligible for a larger Pell Grant in the
future. (A student might expect to be eligible for a larger Pell Grant
if a change in the student’s financial circumstances will lead to a
lower expected family contribution.)

To decline Pell Grant funds, the US Department of Education requires
the student to sign a “written statement clearly indicating that the
student is declining Pell Grant funds for which he or she is otherwise
eligible and that the student understands that those funds may not be
available once the award year is over.” A student can return already
disbursed Pell Grant funds by signing a similar statement, provided
that the funds were received during the current award year. Students
may not return Pell Grant funds from prior award years.

Student Aid for Military Spouses

Students who are married to members of the US Armed Forces may be
eligible for some forms of military student aid. For example, if the
servicemember served at least 90 days after September 10, 2001, the
servicemember may be able to transfer benefits under the Post-9/11 GI
Bill to the servicemember’s spouse or other dependents.
Also called spouse tuition assistance,
Military Spouse Career Advancement Accounts (MyCAA) provide student
financial aid of up to $4,000 for military spouses who are seeking a
degree, license or credential that leads to employment in a “portable”
career field. Other programs include
DEA,
SOC,
SEAP
and
EAP.
There may also be funding available from state and private scholarship
programs, such as NMCRS (including
STAP and
the VADM E.P. Travers Scholarship).